Liquidation calculator.
Solve the exact price your leveraged long or short force-closes. Cross + isolated, every major exchange MMR tier.
Liquidation Price Calculator
Estimate where your position gets liquidated
Est. Liquidation Price
$58,825.00
Moderate RiskDistance: 9.50% ($6,175)
- Position Size
- $10,000
- Quantity
- 0.153846
- Initial Margin
- $1,000
- Maintenance Margin
- $50
Maximum Loss
If liquidated, you could lose up to $1,000 (your entire margin (usd)).
This calculator provides estimates based on simplified formulas. Actual liquidation prices may differ due to funding rates, trading fees, insurance fund contributions, and exchange-specific margin rules. Always check your exchange's documentation for exact calculations.
Profit / Loss Calculator
Calculate your potential profit or loss on a trade
Net Profit / Loss
+$760.92
+76.09% ROI- Position Size
- $10,000
- Quantity
- 0.153846
- PnL Before Fees
- +$769.23
- Total Fees
- -$8.31
- Price Change
- +7.69%
- Leveraged Return
- +76.09%
This calculator shows estimated results. Actual PnL may vary due to slippage, funding rates, partial fills, and exchange-specific fee tiers. Fee presets reflect typical maker/taker rates on major exchanges.
Results are estimates only and should not be relied upon for financial decisions.
What Is a Liquidation Price?
Liquidation is the moment the exchange force-closes your trade — and you lose the deposit you put up for it. Here is why it happens: with leverage, most of your position is the exchange's money, not yours, and it will not let your losses run past your small deposit. The instant the price moves far enough that those losses would swallow your deposit, it automatically sells you out to get its loan back. The exact price where that trips is your liquidation price.
Which side it sits on depends on your trade: for a long it is below your entry; for a short it is above. And the more leverage you use, the closer it creeps to your entry. Go long with $100 at 10x and a roughly 10% drop wipes you out; at 50x it is about 2%; at 100x about 1%. The rule of thumb: double the leverage, roughly halve the move that liquidates you — and crypto can travel that far in minutes.
So the single most important habit in leveraged trading is to know your liquidation price before you enter — and to set a stop-loss comfortably on the safe side of it, so you exit on your own terms for a smaller, controlled loss instead of letting the exchange close you at the worst possible moment. That is exactly what the calculator above is for.
How Liquidation Works: Step by Step
Liquidation doesn't happen instantly — it follows a predictable sequence that every leveraged trader should understand:
1. You Open a Leveraged Position
You deposit margin (collateral) and borrow funds to control a larger position. With $400 margin and 25x leverage, you control $10,000 worth of crypto.
2. The Market Moves Against You
If you're long and the price drops, or short and the price rises, your unrealized losses grow. These losses are deducted from your margin balance in real-time.
3. Margin Call Warning
When your remaining margin approaches the maintenance margin requirement (typically 0.4%–1% of position size), the exchange issues a margin call. This is your last chance to add more collateral or reduce the position.
4. Forced Liquidation
If your margin falls below the maintenance requirement and you haven't acted, the exchange's liquidation engine automatically closes your position at the best available market price. You lose your margin.
5. Insurance Fund or Socialized Losses
If the liquidation price is worse than your bankruptcy price (the price at which your margin is exactly zero), the exchange's insurance fund covers the difference. In extreme cases, losses may be socialized across profitable traders.
How to Calculate Profit and Loss
The profit or loss on a leveraged trade depends on the price difference between your entry and exit, multiplied by your position size. The PnL calculator factors in trading fees on both sides of the trade to give you a realistic net result.
Long PnL: Quantity × (Exit Price − Entry Price) − Fees
Short PnL: Quantity × (Entry Price − Exit Price) − Fees
ROI: Net PnL ÷ Investment × 100%
With leverage, your ROI is amplified. A 1% price move with 5x leverage results in a 5% return on your investment (before fees). At 20x, that same 1% move becomes a 20% swing. This works in both directions — losses are equally amplified. A common mistake among beginners is focusing only on the upside amplification while underestimating the speed at which losses accumulate.
How Is Liquidation Price Calculated?
The simplified formula for estimating liquidation price depends on your position direction:
Long: Liq. Price = Entry × (1 − (Margin − Maintenance) ÷ Position Size)
Short: Liq. Price = Entry × (1 + (Margin − Maintenance) ÷ Position Size)
Where Maintenance is the maintenance margin requirement (typically 0.4%–1% of position size depending on the exchange and tier). This calculator uses a configurable maintenance margin rate so you can match your exchange's specific requirements.
Worked Example: Long Position
Suppose you open a long BTC position at $90,000 with $1,000 margin and 20x leverage. Your position size is $20,000 (≈0.222 BTC). With a 0.5% maintenance margin rate:
• Maintenance margin = $20,000 × 0.5% = $100
• Available margin before liquidation = $1,000 − $100 = $900
• Price drop to liquidation = $900 ÷ 0.222 BTC ≈ $4,054
• Liquidation price ≈ $90,000 − $4,054 = $85,946
• That's only a 4.5% price drop to wipe out your position
Worked Example: Short Position
Now imagine shorting ETH at $3,500 with $500 margin and 10x leverage. Position size is $5,000 (≈1.43 ETH). With 0.5% maintenance margin:
• Maintenance margin = $5,000 × 0.5% = $25
• Available margin = $500 − $25 = $475
• Price rise to liquidation = $475 ÷ 1.43 ETH ≈ $332
• Liquidation price ≈ $3,500 + $332 = $3,832
• That's a 9.5% price increase — more room than the long example because leverage is lower
Isolated vs Cross Margin
The margin mode you choose fundamentally changes your risk profile. Understanding the difference is essential before placing any leveraged trade.
Isolated Margin
Dedicates a fixed amount of collateral to a single position. If liquidated, only the isolated margin is lost — your remaining wallet balance is unaffected.
- Risk is capped per position
- Easier to manage multiple positions
- Liquidation price is closer to entry
- Best for beginners and single-trade risk control
Cross Margin
Uses your entire available wallet balance as collateral. Gives positions more room before liquidation, but a single bad trade can drain your account.
- More breathing room per position
- Profits from one position can offset losses on another
- Risk of total account wipeout
- Best for experienced traders with hedged portfolios
Leverage and Liquidation Distance
The relationship between leverage and liquidation distance is inverse and exponential in its impact. Here's how much the price needs to move against you before liquidation at different leverage levels (excluding maintenance margin for simplicity):
| Leverage | Price Move to Liquidation | Risk Level | Context |
|---|---|---|---|
| 2x | 50% | Low | Equivalent to buying stock on margin |
| 3x | 33% | Low–Medium | Standard for conservative futures trading |
| 5x | 20% | Medium | Common for swing traders |
| 10x | 10% | High | BTC can move 10% in a single day |
| 20x | 5% | Very High | Common intraday BTC volatility |
| 50x | 2% | Extreme | Gets liquidated by normal market noise |
| 100x | 1% | Maximum | A single large order can trigger this |
| 125x | 0.8% | Gambling | Virtually guaranteed liquidation |
Bitcoin's average daily volatility in recent years has been approximately 3–5%. This means any position with leverage above 20x has a meaningful probability of being liquidated within a single trading day, even if your directional thesis is ultimately correct.
Common Liquidation Mistakes
Most liquidations are preventable. Here are the most common mistakes that lead traders to lose their margin:
❌ Using Max Leverage "Because It's Available"
Exchanges offer up to 125x leverage, but this doesn't mean you should use it. Most professionals use 2x–5x. Higher leverage is a marketing feature, not a trading strategy.
❌ No Stop-Loss Order
Without a stop-loss, you're relying on manually watching the market 24/7. Crypto markets move while you sleep. Always set a stop-loss below your liquidation price.
❌ Ignoring Funding Rates
In perpetual futures, funding rates are charged every 8 hours. During strong trends, rates can reach 0.1%+ per cycle. Over a week, this can silently drain 2–5% of your margin, moving your effective liquidation price closer.
❌ Adding Margin to a Losing Position
Adding margin to avoid liquidation is throwing good money after bad. If your analysis was wrong, accept the loss. Adding margin only delays liquidation and increases total potential losses.
❌ Trading During High-Impact Events
FOMC announcements, CPI data releases, and unexpected regulatory news can cause 5–15% moves within minutes. Over $1 billion in liquidations occurred across exchanges during the August 2024 crash in under 24 hours.
Tips to Avoid Liquidation
✅ Use Lower Leverage (2x–5x)
Lower leverage gives significantly more breathing room. A 5x long on BTC can survive a 20% drawdown, while a 50x position gets liquidated by a 2% dip.
✅ Set Stop-Loss Orders
Always place a stop-loss at least 20–30% above your liquidation price. This ensures your position closes with a controlled loss rather than a total margin wipeout.
✅ Monitor Funding Rates
When funding is extremely high (above 0.05%), consider taking the other side of the trade or waiting for rates to normalize before entering.
✅ Size Positions Using the 1% Rule
Never risk more than 1–2% of your total portfolio on a single leveraged trade. position size calculator to determine the right trade size.
✅ Use Isolated Margin Mode
Isolated margin limits your loss to the margin allocated to that specific position. Until you're experienced with managing correlated positions, stick with isolated mode.
Liquidation on Different Exchanges
Each exchange handles liquidation slightly differently. Key differences include maintenance margin rates, insurance funds, and auto-deleverage (ADL) mechanisms:
| Feature | Binance | Bybit |
|---|---|---|
| Max Leverage | 125x | 100x |
| Maintenance Margin | Tiered (0.4%–5%) | Tiered (0.5%–5%) |
| Insurance Fund | >$1B | ~$400M |
| ADL System | Yes | Yes |
| Partial Liquidation | Yes | Yes |
Most major exchanges now use partial liquidation — they reduce your position size incrementally rather than closing everything at once. This helps limit slippage and gives you a chance to manage the remaining position. However, partial liquidation still results in realized losses and should not be relied upon as a risk management strategy.
Frequently Asked Questions
What happens when you get liquidated?+
Can you get liquidated on spot trading?+
What is the difference between liquidation price and bankruptcy price?+
Do I lose everything when I get liquidated?+
How can I calculate my liquidation price before opening a trade?+
Does funding rate affect liquidation price?+
What is auto-deleverage (ADL)?+
Is higher leverage always worse?+
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Derivatives & Leveraged Products — Important Risk Warning
Derivatives are complex financial instruments that carry a high risk of rapid capital loss. Leveraged trading (futures, perpetual contracts, margin trading, options) can result in losses that exceed your initial investment. The majority of retail investor accounts lose money when trading derivatives.
You should carefully consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money. This content is for educational purposes only and does not constitute financial advice, investment advice, or a recommendation to trade derivatives.
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